Banks are giving some investors an inside track when issuing asset-backed securities and this risks damaging a market seen as key to EU growth, according to a blunt warning from the body that represents the UK's £5.7 trillion asset management industry.

The UK's Investment Association has taken its concerns directly to a group of leading banks, in a letter seen by FN, dated October 18, and sent to Bank of America Merrill Lynch, Citibank, Deutsche Bank, JP Morgan, Morgan Stanley, as well as the Association for Financial Markets in Europe - the bank trade body.